Yesterday, I blogged about how the traditional newspaper ad model isn’t dead yet. The same can be said for TV advertising. Industry watchers acknowledge that digital continues its crawl toward dominance and eventually this media format will overtake TV. But according to STRATA analysts, the TV ad model is still important. How long will TV retain the top position?
Transmedia storytelling has proven successful in media formats such as traditional books and videogames. Now entertainment marketers are moving to use this strategy to keep their audiences engaged as they promote new movies or TV shows. A report in Entertainment Marketing indicates that television and film studios are incorporating “transmedia” elements into their marketing — “developing interactive narratives that unfold online, via text messages and social network profiles, and even sometimes via real world interaction.”
For some marketers, reaching specific demographic groups means sponsoring televised sporting events. The most recent analysis of sports advertisers, done annually by Sports Business Journal, shows that Anheuser-Busch was king in 2009 when it came to televised events. The company spent over $300 million last year on TV sporting events, which accounted for 75% of its total ad spending.
As the use of digital video recorders (DVRs) continue to rise — the market penetration at the end of 2009 was measured at 32.3% — marketers are looking for new ways to reach TV viewers. Often, this means weaving the discussion of or appearance of products into the program itself. According to a report by VSS Communications, marketers spent at least $3.9 billion in 2009 to get their “products, services and brands” onto the TV screen.
At the end of 2009, BIA/Kelsey predicted TV stations would see a revenue increase to $16.8 billion for 2010. These same analysts reaffirmed revenue expectations for TV in their 2010 U.S. Local Media Annual Forecast released last week. Additionally, radio is expected to reach $13.9 billion in 2010.
TV and radio media companies can usually count on a sales boost in years filled with state and local elections. And when those years also include Olympic games, the sales picture is even brighter. Despite the slow economic recovery, 2010 should be no exception for media companies. While Barclays Capital previously predicted a 0.3% drop in 2010 advertising, including the Olympics and political categories, the revised projection now stands at a 3.5% gain.
There’s little consensus among analysts about the growth of the U.S. ad market in 2010. Earlier this year, a Barclays analyst mentioned an overall 3.5% increase with sectors such as TV benefitting from both political and Olympics advertising. But based on the results of a recent survey, national TV advertising may be flat in 2010. In addition, the business model may need some adjustments if it is to compete effectively with newer media formats.
Local TV and radio station operators have some small reasons to cheer about in 2010. The business outlook is predicted to remain difficult but analysts expect gains of between 2 and 3% in these industries this year. Where will the gains be realized? Writing for Mediaweek, Katy Bachman compiled the following information.
Last month I blogged about how video media oversupply is expected to drive down the value of the traditional TV ad market. I also hinted at how consumer consumption of three screens – TV, Internet and mobile is growing – but at some point will reach a limit. Nielsen’s Anywhere Anytime Media Measurement initiative for the second quarter of 2009 shows that consumers are still increasing screen time and one way they’re managing all of these inputs is through simultaneous usage.
According to the latest ChangeWave survey of business professionals between the ages of 45 and 63 on TV viewing habits vs. home Internet usage, these Boomers spend more free time online than they do watching traditional TV. And, by a five-to-one margin, the amount of traditional TV Boomers are watching versus a year ago is decreasing.